Cooling measures 2023 update: The Singapore government announced late Wednesday night (26 April) that the Additional Buyer’s Stamp Duty (ABSD) rates will be increased, effective from 27 April.
Among the changes, the increase is the steepest for foreigners, doubling from 30% (from the December 2021 cooling measure) to 60%.
Meanwhile, Singaporeans buying their second residential property will be subject to an ABSD rate of 20% — an increase from 17%. The ABSD rate for Permanent Residents (PR) buying their second residential property will also be higher at 30%, up from 25%.
Here’s a table summarising the increases in ABSD
|ABSD rate from 16 Dec 2021 to 26 Apr 2023||ABSD rate from 27 Apr 2023||Increased by|
|Singapore citizens||First residential property||0%||0%||–|
|Second residential property||17%||20%||3%|
|Third and subsequent residential property||25%||30%||5%|
|Permanent Residents (PR)||First residential property||5%||5%||–|
|Second residential property||25%||30%||5%|
|Third and subsequent residential property||30%||35%||5%|
|Foreigners^||Any residential property||30%||60%||30%|
|Entities||Any residential property||35%||65%||30%|
|Trustees||Any residential property||35%*||65%||30%|
|Housing developers||Any residential property||35% (remittable) + 5% (non-remittable)||35% (remittable) + 5% (non-remittable)||–|
^Excluding Nationals and Permanent Residents of Iceland, Liechtenstein, Norway and Switzerland, and Nationals of the United States of America, who will be subject to the same ABSD rate as Singaporeans.
*The ABSD rate for trustees was from 9 May 2022 to 26 April 2023.
And here’s an infographic on how to calculate your ABSD
Alternatively, use 99.co’s stamp duty calculator to calculate how much ABSD to pay!
At the same time, the Additional Conveyance Duties for Buyers (ACDB) for qualifying acquisitions of equity interest in property holding entities (PHEs) has been increased from up to 46% to up to 71%. A PHE refers to an entity with at least 50% of its total tangible assets comprising prescribed immovable properties in Singapore.
Cooling measures come after a 3.2% price increase in Q1 2023
The cooling measures, the third round since December 2021, come after a 3.2% increase in private property home prices in the first quarter of 2023, up from 0.4% increase in Q4 2022.
In a joint press release by the Ministry of Finance (MOF), Ministry of National Development (MND) and Monetary Authority of Singapore (MAS), they noted that while the previous cooling measures in December 2021 and September 2022 have had a “moderating effect”, there were “renewed signs of acceleration amid resilient demand” in the first quarter of 2023.
“Demand from locals purchasing homes for owner-occupation has been especially strong, and there has also been renewed interest from local and foreign investors in our residential property market.
“If left unchecked, prices could run ahead of economic fundamentals, with the risk of a sustained increase in prices relative to incomes.”
Transitional provision for ABSD
Just like the December 2021 round of cooling measures, there will be a transitional provision in which the previous ABSD rate will apply for cases that meet all of the following criteria:
- The Option to Purchase (OTP) was granted by the sellers on or before 26 April 2023
- This issued OTP is exercised by 17 May 2023, or within the OTP validity period, whichever is earlier
- This OTP has not been changed on or after 27 April 2023
ABSD remission for married couples
Married couples comprising at least one Singaporean spouse may apply for the ABSD remission. This is provided that they jointly purchase a second residential property.
They will also have to sell their first residential property within six months of
- The date of purchase of the second home if it is a completed property (eg. resale), or
- The issue date of the Temporary Occupation Permit (TOP) or Certificate of Statutory Completion (CSC) of the second home, whichever is earlier, if it is not completed at the time of purchase (eg. new launch condo)
Condos for sale
Those purchasing an HDB flat or an Executive Condominium from the developer are not subject to the ABSD, provided that at least one of the buyers is a Singaporean.
Properties for sale (that aren't subject to ABSD)
Planning to sell off your property fast? Let us help you get the right price by connecting you with a premier property agent.
If you found this article helpful, 99.co recommends 4-room Pinnacle@Duxton flat, sets new sale record at S$1.4m and S$1,369 psf and 39 condo units sold at a loss in February 2023, the biggest at S$2.68m.
Looking to sell your property?
Whether your HDB apartment is reaching the end of its Minimum Occupation Period (MOP) or your condo has crossed its Seller Stamp Duty (SSD) window, it is always good to know how much you can potentially gain if you were to list and sell your property. Not only that, you’ll also need to know whether your gains would allow you to right-size to the dream home in the neighbourhood you and your family have been eyeing.
One easy way is to send us a request for a credible and trusted property consultant to reach out to you.
Alternatively, you can jump onto 99.co’s Property Value Tool to get an estimate for free.
If you’re looking for your dream home, be it as a first-time or seasoned homebuyer or seller – say, to upgrade or right-size – you will find it on Singapore’s fastest-growing property portal 99.co.
Meanwhile, if you have an interesting property-related story to share with us, drop us a message here — and we’ll review it and get back to you.
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